Swiber defaults on upcoming coupon payment due on Aug 2

A view of Swiber's shipyard in Singapore in July 2013.
A view of Swiber's shipyard in Singapore in July 2013.PHOTO: REUTERS

SINGAPORE - Swiber Holdings is unable to pay the upcoming coupon payment for the series 001 Trust Certificates due on Aug 2, 2016, its provisional liquidator Cameron Duncan, said on Monday (Aug 1).

The S$150 million 6.50 per cent certificates due 2018 were issued by subsidiary Swiber Capital Pte Ltd.

Swiber on Friday made a sudden late night announcement that it was withdrawing its shock winding-up application to opt instead for judicial management.

Its bid to survive averted what would have been the biggest collapse of an oil and gas related company in Singapore.

A judicial management allows Swiber to continue operating under court supervision while attempting to turn around the business.

 

Swiber on Friday said that its subsidiaries have received further letters of demand, bringing the total sum of claims to US$50.5 million (S$67.7 million), up from US$4.76 million on July 8, when it first announced the claims.

Sources told The Straits Times that besides DBS Bank - whose exposure to Swiber totalled S$700 million and is reckoned to be Swiber's largest financial creditor - there were other key lenders behind Friday's decision.

The paper understands that Bank of America-Merrill Lynch, Citibank and Deutsche Bank are Swiber's major financial creditors.

Swiber in June redeemed S$130 million of 5.125 per cent notes and in July redeemed S$75 million of 7 per cent securities. It has four more Singapore dollar bonds worth a total of S$460 million outstanding, according to data compiled by Bloomberg.

The group had US$1.43 billion (S$1.93 billion) of liabilities on March 31 and US$1.99 billion in total assets on March 31, according to its latest quarterly accounts.

Oil-related firms here face S$1.4 billion of Singapore dollar securities maturing through 2018, with S$325 million due by year-end, according to Bloomberg-compiled data on July 18.

Swiber is being investigated by the Singapore Exchange for any breaches in listing rules after the company made key disclosures only after queries from the regulator.